The present invention relates to electronic trading and more particularly, to an electronic trading system for simulating the trading of carbon dioxide equivalent emission reductions and methods of use.
Carbon dioxide equivalent (CO2e) is the universal unit of measurement used to indicate the global warming potential of greenhouse gases. Some examples of greenhouse gases are carbon dioxide (CO2), water vapor (H2O), methane (CH4), chlorofluorocarbons (CFCs), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6). Possible methods of reducing CO2e emissions include reducing actual emissions, avoiding potential emissions, or removing and storing atmospheric carbon in a sink. Emission reductions may qualify for accreditation under future international regulatory regimes, domestic regulatory regimes, or both.
In an evolving CO2e emission reductions trading market, entities such as countries, corporations, or non-profit organisations may desire to simulate their participation prior to entry to gain a deeper understanding of the market. Such entities may, for example, need to understand their emission profiles, assess their potential obligations and associated liabilities, and learn to trade CO2e emissions reductions.
It is therefore desirable to provide an electronic trading system for simulating the trading of carbon dioxide equivalent emission reductions and methods of use.